Calculate the Economic Order Quantity
Q: A company, needs 410 kg of a material per month. It costs RO 100 to make and receive an order, and…
A: From the given data, Monthly Demand = 410 kgs So, Annual demand(D) = 410×12=4920 kgs Ordering…
Q: d setup costs are $200 per order. What is the minimum total stock administration cost for the…
A: The total cost of inventory is the sum of purchasing, ordering, and holding charges. The optimal…
Q: Assume a firm seeks to minimize its total inventory costs of ordering widgets that it needs for its…
A: Given- Annual demand (D) = 30,000 widgetsOrdering cost (S) = $25 per orderHolding cost (H) = $6…
Q: Hayes electronics assumed with certainty that the ordering cost is $450 per order and the inventory…
A: a) $450 ordering cost per order $170 inventory carrying cost per unit per year D = annual demand…
Q: Most inventory models attempt to minimize Select one: O a. the safety stock O b. the number of…
A: Inventory control helps your business maintain the proper quantity of inventory whereas reducing…
Q: A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service…
A: Here, this question is Part of Inventory Management Topic and It falls under Business Operation…
Q: In the economic order quantity (EOQ) model, where does the optimal order quantity value exist?…
A: The EOQ may be a company's optimal order quantity that minimizes its total costs associated with…
Q: Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant…
A: Therefore, optimal number of orders per year = 775 units
Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…
A: Given that: EOQ = 2500 Price = P4 Holding Cost (H) = 25% of Price =0.25*4 = P1
Q: Bell Computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per…
A: Given data Holding cost (H) = $36 Ordering cost (S) = $121 per order Sales are steady at 395…
Q: At Dot Com, a large retailer of popular books, demand is constant at 32,000 books per year. The cost…
A: Given that, Annual Demand (D) = 32000 books per year Ordering cost (A) = $10 Working days = 300…
Q: A fast food outlet uses 220 breakfast paper cartons. The paper pack cost RO 1.100 and the carrying…
A: We use the EOQ method;
Q: For a company operating 300 days a year, the annual demand is 63,000 units, the lead time is 4…
A: Find the given details below: Given details Demand (D) 63000 Units Inventory Turnover 12…
Q: ____ is the ordering model which calculates the timing of the inventory order: Select one: a. ABC…
A: Inventory Control:Inventory control benefits business organizations to manage the right amount of…
Q: a supermarket expects to sell 1000 boxes of sugar in a year. each box costs $2 and there is a fixed…
A: Given information Selling price = 1000 boxes Cost = $2 Fixed delivery charge = $20 per order…
Q: Suppose the newsvendor model is used to manage inventory. Which of the followingcan happen when the…
A: Let’s first understand the concept of Newsvendor model and newsvendor model and how it manages…
Q: The best quantity to order One of the formulas for inventorymanagement says that the average weekly…
A: Given that; ONne of the formulas for inventorymanagement says that the average weekly cost of…
Q: (Round your answer to 2 decimal places.) A retailer uses the order-up-to model to manage inventory…
A: Coefficient of variation = Standard deviationMean In Poisson distributions, the standard deviation…
Q: 1. David and Beth Sheba run a health food store. Their top selling item is called Heavenly Kelp. The…
A: Demand is the total quantity of products and services for which the consumers are ready to pay…
Q: Answer the following true or false.c. The newsvendor model does not include a fixed order cost
A: The answer is true.
Q: Suppose the following item is being managed using a fixed-order quantity model with safety stock.…
A: Below is the solution:-
Q: The selling price of a certain type of computer is RO 1,000 , and the annual holding cost is 25 % of…
A: Monthly Demand=1000 units Annual demand(A) = 1000×12=12,000 units per year Per unit cost= RO 1000…
Q: What is the reorder point
A: Reorder point is the stock level that initiate new order for fill the stock level. Its about the sum…
Q: -A local bicycle store operates 365 days a year. The monthly holding cost for the bicycle is $10.…
A: Given, Weekly demand (d) = 30 bikes Annual demand (D) = 30 × 52 = 1560 bikes Monthly holding cost…
Q: CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to…
A: Order quantity should be chosen in such a way that the total costs are minimized and profits…
Q: Which one of the following variables is not explicitly considered in the computation of the Economic…
A: Storage cost is the cost incurred when inventory stock is stored and managed in the warehouse of an…
Q: The primary objective of the basic economic order quantity model is a. to calculate the reorder…
A: The goal of the economic order quantity (EOQ) model is to limit the absolute expenses related with…
Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…
A: Annual demand = 4800 Kgs Number of working days = 6 days per week×52 weeks = 312 work days Lead time…
Q: jeweler purchases silver for use in its products. The firm uses 190 grams of silver per week and…
A: Given data: Weekly demand (d) = 190 grams No. of weeks in a year = 52 Annual demand (D) = 190 x 52…
Q: assumptions
A: EOQ model Economic Order Quantity (EOQ) is the ideal request amount an organization should buy to…
Q: A firm orders on average 400 wheels each month. Demand is normally distributed with standard…
A: This question is related to the topic - Inventory management and this topic falls under Operations…
Q: Geox Ltd buys shoes from a supplier in Italy and sells them on to retailers in Australia. Geox Ltd…
A: The annual demand for shoes= 45,600. The ordering cost = $55 per order. The annual cost = $8.75 per…
Q: The basic EOQ model is based on all the following assumptions except: * A. Annual demand is known…
A: EOQ- Economic Order quantity provides the information of order quantity economically to the company.…
Q: Glorious Gadgets is a retailer of astronomy equipment. They purchase equipment from a supplier and…
A: Here the given function is: The function C(x)=1.5x+12500x-1+ 5000 x = lot size
Q: Consider the EOQ model. At the optimal order quantity, the annual holding cost is $10,000. What is…
A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…
Q: Hayes Electronics assumed with certainty that the ordering cost is $450 per order and the inventory…
A: Economic order quantity = Q Co = Ordering cost TC = Total cost Cc = Carrying cost D = Demand Q =…
Q: XYZ Inc. needs 400 kgs of a material per month. It costs OMR 100 to make and receive an order, and…
A: Reorder point is the minimum unit quantity a specific product reaches to trigger inventory…
Q: I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars…
A: Demand is the total quantity of products and services for which the customers are ready to pay…
Q: Please help solve this within 45 min.. please Mega Sdn . Bhd is a wholesaler which buys and sells…
A: Annual Demand = 100 units per month = 100*12=1200 units. Purchase Price = RM 20 Holding Cost = 10%…
Q: A company purchases wood for use in its products. The firm uses 760 pounds of wood per week and…
A: Eoq is the economic or optimal order quantity that company should purchase to minimise its total…
Q: A food processor purchases corn for use in its products. The firm uses 700 pounds of corn per week…
A: Optimal order quantity is the quantity that company should purchase so that their total inventory…
Q: An organization manufactures supplies for landscaping companies which has an annual demand of…
A: EOQ is a company's optimal order quantity that underestimates the total costs related to ordering,…
Q: The selling price of a certain type of computer is RO 1,000, and the annual holding cost is 25% of…
A: Economic order quanitity refers to a technique used for the management of inventory. It refers to…
Q: At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost…
A: Annual Demand = D = 20400 books Ordering Cost = S = $75 Annual Holding Cost = h = $6 Lead time = L =…
Q: XYZ company produces staplers and other items. The production cost per unit is $8 and the cost of…
A: Annual Demand (D) = 20,000 Daily Demand (d) = 20000/250 = 80 Daily Production (p) = 120 Setup /…
Q: Andy's Auto Dealership (AAD) is a family-run auto dealership selling both new and used vehicles. In…
A: given, AAD total sell = 160 vehicles new vehicles represent = 60% of sales
Q: PC World stocks and sells a particular brand of personal computer. It costs the store £ 460 each…
A: The optimal order quantity is the quantity that the company need to buy so that its annual inventory…
It costs you $500 every time you place an order for a particular product. It costs you $3 per unit to keep this product in stock. Annual sales are 1,552. Calculate the Economic Order Quantity to the nearest integer.
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- company sells 20,000 radios evenly throughout the year. The cost of carrying one unit of inventory for one year is P8, and thepurchase order cost per order is P32. What is the economic orderquantityDemand for your product averages 20 units per day, with a standard deviation of 4. Your lead time is 5 days. What should your reorder point be, if you want to have a 95% chance of not running out of products during the lead time? With this reorder level, how much safety stock do you have?Demand for your product averages 10,000 units per year. Placing an order costs $500. The holding cost per unit per year is 15% of the cost of the item, and items cost $6.00. What is the EOQ?
- I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars annually. The cost of ordering is $1,108, and the annual cost of holding a car on the lot is $500. What is the economic ordering quantity (EOQ)? Round to the nearest whole number (so if your answer is 443.363, round to 443)An SKU costing $10 is ordered in quantities of 500 units; annual demand is5200 units, carrying costs are 20% and cost of placing an order is $50.Calculate1. Average inventory2. Number of orders placed per year3. Annual Inventory carrying cost4. Annual Ordering cost5. Annual total costABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier times, the supplier may take 7 days.Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average P5 per year. There is also an opportunity cost of 1% per year for every peso invested in inventories. Each box of candles costs P450.If ABC would continue its current inventory management policy, it would keep 10,000 boxes as safety stock and order tendays-worth of inventory. (C) Reorder Point and Economic Order Quantity19. What would the average number of boxes be if the safety stock from Part A was kept and the EOQ from Part Bwas followed? Round off to two decimal places.20. How much would the carrying cost for the year be based on item 19?21. How much would the total inventory related (ordering plus carrying) costs be if the…
- MAY I ASK FOR THE SOLUTIONS AND ANSWERS OF NO. 12 to 17 (kindly refer to the table and the problem above it) Thank you! ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier times, the supplier may take 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average P5 per year. There is also an opportunity cost of 1% per year for every peso invested in inventories. Each box of candles costs P450. If ABC would continue its current inventory management policy, it would keep 10,000 boxes as safety stock and order tendays-worth of inventory. (A) Reorder Point 1. What should be the reorder point in boxes? 2. How much would the normal lead time usage be? 3. How much should ABC keep as safety stock? (B) Economic Order Quantity 4. What is the annual demand for the boxes of…ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier times, the supplier may take 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average P5 per year. There is also an opportunity cost of 1% per year for every peso invested in inventories. Each box of candles costs P450. If ABC would continue its current inventory management policy, it would keep 10,000 boxes as safety stock and order ten-days-worth of inventory. (A) Reorder Point1. What should be the reorder point in boxes?2. How much would the normal lead time usage be?3. How much should ABC keep as safety stock?(B) Economic Order Quantity4. What is the annual demand for the boxes of candles?5. How much is the carrying cost of one box of candles for one year?6. What is the economic order quantity for the boxes of…ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of 500 boxes but may sometimes sell a maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier times, the supplier may take 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average P5 per year. There is also an opportunity cost of 1% per year for every peso invested in inventories. Each box of candles costs P450. If ABC would continue its current inventory management policy, it would keep 10,000 boxes as safety stock and order tendays-worth of inventory. (A) Reorder Point 1. What should be the reorder point in boxes? 2. How much would the normal lead time usage be? 3. How much should ABC keep as safety stock? (B) Economic Order Quantity 4. What is the annual demand for the boxes of candles? 5. How much is the carrying cost of one box of candles for one year? 6. What is the economic order quantity for the…
- The company uses 150,000 gallons of alcohol per month. The cost of carrying the alcohol in inventory is P0.50 per gallon per year, and the cost of ordering is P150 per order. The firm uses the alcohol at a constant rate throughout the year. It takes 18 days to receive an order once it is placed. The reorder point is?The owner and manager of a hardware store reevaluates his inventory policy for hammers. sells an average of 50 hammers a month, so you have placed purchase orders for 50 hammers with a distributor at a cost of $20 each at the end of each month. But the owner does not place all the store orders and find that this takes much of your time. He estimates that the value of his time spent ordering hammers is $75. a) What must be the unit cost of maintaining hammers for the current policy of the hardware store to be Optimal according to the EOQ model? b) If the distributor delivers an order for hammers in 5 business days (out of an average of 25 per month), what should be the reorder point, according to the EOQ model?Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. To provide a 98 percent service probability, what must the reorder point be? Suppose the production manager is told to reduce the safety stock of this item by 100 units. If this is done, what will the new service probability be?